A top savings provider has raised interest of its easy access ISA making it an “enticing” market leader.
Trading 212 has raised the interest on its easy access ISA to 5.15%, earning it an “excellent” Moneyfactscompare rating.
There is no minimum deposit required to get started and interest is paid daily.
Despite being offered by a trading platform, the Cash ISA will function as expected, with funds securely held in a segregated account and protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week Trading 212 increased the rate on its Cash ISA. The deal takes a joint market-leading position when compared to its peers in the variable cash ISA market.
“This may be an enticing option for savers who would like more flexibility with their tax-free savings.
“The deal may appeal to many as it does not require any minimum opening balance and additions can be as small as £1. On assessment, the account secures an Excellent Moneyfacts product rating.”
Trading 212’s account takes the joint top spot with Moneybox, which is also offering a 5.15% interest rate on its Cash ISA.
The rate includes a 0.45% bonus for 12 months and interest is paid on deposits of £500 and more. Three withdrawals are permitted per year before a lower rate of interest is applied, making it key to keep withdrawals to a minimum to truly make the most of the account.
Plum places just behind with its ISA offering an Annual Equivalent Rate (AER) of 4.92%. The rate includes a 0.86% bonus for 12 months and the full interest rate is paid on deposits of £100 and more.
Similar to Moneybox’s account, only three withdrawals are allowed per year to maintain the higher rate of interest.
Cash ISAs have become even more popular in recent years, with frozen allowances and higher interest rates dragging more savers into paying tax on their pots.
Cash ISAs enable Britons to save up to £20,000 a year tax-free, making them an attractive option for those looking to maximise their savings without incurring additional taxes.
